Troy to benefit from sale of O'Neil Apartments

TROY -- The city could receive at least $400,000 from the sale of the O'Neil Apartments from one private owner to another thanks to an exemption agreement reached in 1977.

SNI Development Companies has plans to sell the O'Neil Apartments, located at 2121 Sixth Ave., to O'Neil Owners, LLC. Since SNI entered into an agreement to make payments of Gross Shelter Rents in lieu of full real property taxes for up to 40 years, the termination agreement requires SNI to pay any surplus funds, which is the $400,000.

This money was not originally budgeted by the city for the 2013 fiscal year, according to spokesman Mike Fraser, but it is a nice surprise.

"It's good economic news for the city going into 2013," Fraser said, "Having this lump sum on the books for this year is certainly welcomed news."

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According to city documents on the sale, O'Neil Owners, LLC., has plans of investing $10.5 million in the 115-unit housing complex, which is also subsidized by the federal department of Housing and Urban Development. This would include renovations and upgrades to the housing facility.

O'Neil Owners, LLC. is also entering into a host community agreement where the company will make annual payments starting at $28,000 in lieu of taxes with a yearly increase where the city will be receiving $76,493 by 2048. This covers the cost municipal services provided by the city.

The sale must be approved by the City Council but it is on its way to a vote next Thursday at its monthly meeting after it passed unanimously in the Finance Committee meeting Jan. 24.

Fraser said the money will most likely go into the reserve fund balance. "We'll direct the money where we need items funding," he said.